Correlation Between SCB X and PTT Public
Can any of the company-specific risk be diversified away by investing in both SCB X and PTT Public at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SCB X and PTT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCB X Public and PTT Public, you can compare the effects of market volatilities on SCB X and PTT Public and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SCB X with a short position of PTT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCB X and PTT Public.
Diversification Opportunities for SCB X and PTT Public
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCB and PTT is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding SCB X Public and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and SCB X is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SCB X Public are associated (or correlated) with PTT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Public has no effect on the direction of SCB X i.e., SCB X and PTT Public go up and down completely randomly.
Pair Corralation between SCB X and PTT Public
Assuming the 90 days trading horizon SCB X Public is expected to generate 0.79 times more return on investment than PTT Public. However, SCB X Public is 1.27 times less risky than PTT Public. It trades about 0.17 of its potential returns per unit of risk. PTT Public is currently generating about -0.17 per unit of risk. If you would invest 11,500 in SCB X Public on October 26, 2024 and sell it today you would earn a total of 750.00 from holding SCB X Public or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCB X Public vs. PTT Public
Performance |
| Timeline |
| SCB X Public |
| PTT Public |
SCB X and PTT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCB X and PTT Public
The main advantage of trading using opposite SCB X and PTT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCB X position performs unexpectedly, PTT Public can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PTT Public will offset losses from the drop in PTT Public's long position.| SCB X vs. JD Food PCL | SCB X vs. Food Moments PCL | SCB X vs. The Navakij Insurance | SCB X vs. Thai President Foods |
| PTT Public vs. IRPC Public | PTT Public vs. PTT Oil and | PTT Public vs. Power Solution Technologies | PTT Public vs. Star Petroleum Refining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |